Fannie, Freddie to Ease Loan-Modification Rules

Fannie Mae and Freddie Mac will simplify their mortgage-modification policies, waiving a requirement that borrowers who are already seriously delinquent on their mortgages prove hardship, the companies' federal regulator said Wednesday.

The policy change will also allow borrowers who make three reduced payments during a "trial" modification to automatically have the modification made permanent. Previously, borrowers had been required to show proof of hardship and document their financial situations before the...